Ceres and Doosan expand strategic collaboration, building mass manufacturing in Korea

Ceres and Doosan expand strategic collaboration, building mass manufacturing in Korea 1
The contracts with Doosan Corporation are worth £6m to Ceres for the long-term testing, sales and integration of stacks.

HORSHAM: Ceres Power Holdings plc, Doosan Fuel Cell Co., and Doosan Corporation announced the signing of strategic collaboration and licence agreements.

These include the building of an initial 50MW mass manufacturing facility for the manufacture under license of Ceres’ fuel cell stacks in South Korea.

The value of the announced contract with Doosan Fuel Cell to Ceres will be £30 million over 3 years with an additional £7 million contingent on meeting agreed KPIs. 

It includes a global non-exclusive license to manufacture Ceres’ solid oxide fuel cell stacks with technology transfer and joint development and also includes agreed royalty streams upon the commencement of production and commercial sale of 5kW SteelCell stacks.

The contracts with Doosan Corporation are worth £6m to Ceres for the long-term testing, sales and integration of stacks.

Today’s announcement marks the signing of Ceres’ latest global manufacturing partner, and builds on the collaboration and licensing agreement signed with Doosan Corporation in July 2019 for a commercial CHP system targeting the commercial building market.

It is now agreed that Ceres and Doosan will collaborate to advance Ceres’ technology to build a mass manufacturing facility in South Korea leveraging Doosan’s strength in industrialisation for the production of Ceres SteelCells and stacks by 2024 and support integration of stacks for higher power generation applications.

Doosan has established itself as a world-leader in the stationary fuel cell market with annual sales of nearly KRW 500 billion and is committed to developing and supplying efficient clean stationary fuel cells to meet the South Korean government renewable energy plans and to shape the hydrogen future.

Fuel cell stacks manufactured by Doosan will initially meet its own product demand for CHP and the planned power plant product line. In time, manufacturing could expand to meet global demand for Ceres’ stacks in multiple applications.

South Korea has progressive targets that encourage the deployment of hydrogen and fuel cell technology (16 GW by 2040). Its Green New Deal has committed KRW73.4 trillion (£46 billion) as part of a wider national strategy to tackle climate change, support industry and jobs, and to break the economy’s dependence on carbon.

Doosan’s fuel cell business designs, engineers and manufactures fuel cells for both commercial and industrial applications and recently opened the world’s largest by-product hydrogen fuel cell power plant.

Doosan, the leader in manufacturing and commercialising fuel cell technology, will utilise Ceres’ world-leading SteelCell solid oxide fuel cell technology, to enable high efficiency and cost competitive products that will play an important role in delivering clean, secure and scalable energy systems.

Mr. Hyunsoo Dong, Vice Chairman of Doosan Corporation commented: “By partnering with Ceres Power, Doosan will expand its product portfolio and strengthen its position as the leader in the fuel cell industry. We are excited to expand on our existing collaboration to build a world leading SOFC stack mass manufacturing centre and to create a strong fuel cell industry ecosystem in Korea and beyond.”

Phil Caldwell, CEO of Ceres Power said: “We are absolutely delighted to welcome Doosan as a strategic manufacturing partner and to broaden our relationship to target utility scale systems. Doosan has an enviable track-record in commercialising fuel cell technology.  Our success is measured by our partners’ success and this is further validation of our asset-light, licensing business model that enables the world’s most progressive companies to adopt our technology at scale and speed.”

www.ceres.tech

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